Volatility Views 698: Crazy VIX Calls and More Fun With Perpetual Futures

Despite an AI-driven equity scare, flat VIX term structure and weak S&P breadth suggest markets remain complacent into election-season risk.

• Whipsaw week on AI jitters: S&P and Nasdaq sold off hard (Nasdaq down nearly 2%) on a report OpenAI's annualized revenue was ~$50B versus a rumored $68B, then fully recovered the next day; Scott Nations called the selloff overdone.
• Breadth warning flag: Nations notes the S&P is within 0.5% of its all-time high while the average index member sits more than 19% below its own 52-week high, a split he flags as a risk signal.

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